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Pennsylvania Launches New Consumer Protection Initiative

Pennsylvania's new consumer protection hotline aims to assist residents in reporting scams.

News Summary

Governor Josh Shapiro has launched a consumer protection hotline, website, and email service for Pennsylvania residents. This initiative comes in response to cuts in federal consumer protection resources. The new hotline can be accessed at 1-866-PA-COMPLAINT, and it aims to aid individuals in reporting scams and resolving financial disputes. The state will leverage its strong consumer protection laws to help address the gaps left by federal funding cuts. Consumers can now find support for issues ranging from predatory lending to insurance disputes without needing additional staff or funding.

Pennsylvania residents now have a new resource for consumer protection as Governor Josh Shapiro launched a consumer protection hotline, website, and email address aimed at helping individuals report scams and resolve financial and insurance issues. This initiative comes in response to federal cuts to consumer protection resources, particularly affecting the Consumer Financial Protection Bureau (CFPB).

The newly established hotline can be reached at 1-866-PA-COMPLAINT (1-866-722-6675). Additionally, residents can access assistance by visiting the website at pa.gov/consumer or by emailing consumer@pa.gov. Governor Shapiro emphasized that these measures are necessary due to a perceived lack of action from the federal government in this vital area.

Shapiro indicated that the CFPB previously played a similar role in consumer protection but has faced significant challenges due to ongoing litigation and legislative obstacles. Notably, the House Financial Services Committee recently voted to cut funding for the CFPB by 60%, which has raised concerns about its capacity to serve consumers effectively.

In contrast, Governor Shapiro expressed confidence in Pennsylvania’s robust consumer protection laws, which can now be leveraged to address these gaps at the state level. The state’s Pennsylvania Insurance Department and Department of Banking and Securities will take a more active role in aiding consumers, facilitating the resolution of complaints encompassing financial exploitation, predatory lending, insurance disputes, and issues with student loan servicing.

This consumer protection initiative is timely, especially in light of the diminished federal support seen during the previous administration. Under the Trump administration, the CFPB underwent various cuts, including the dismissal of its director Rohit Chopra, which directly affected the bureau’s ability to protect consumers and enforce laws against fraudulent practices.

Shapiro has a history of advocating for consumer rights, having established a Consumer Financial Protection Unit during his tenure as Attorney General. This unit focused on defending vulnerable populations, including seniors, students, and military families, against predatory lending practices. With this new initiative, Shapiro aims to ensure that Pennsylvanians can easily access support when they encounter fraud or are victims of scams.

The state has a track record of effective consumer protection efforts, having returned over $22 million to consumers in 2024 through the Pennsylvania’s Department of Banking and Securities and Insurance Department. The Bureau of Consumer Protection also plays a crucial role in investigating complaints and mediating disputes between consumers and businesses.

While Governor Shapiro announced these resources, he clarified that the state does not plan to hire additional staff or seek more funding to support this initiative. He acknowledged that the commonwealth receives hundreds of consumer complaints each week, largely concerning scams, and these resources aim to provide the necessary support to residents.

Furthermore, Shapiro expressed concerns regarding current federal strategies that seem to hinder efforts to combat fraud and abuse, describing them as counterproductive. The launch of this consumer protection initiative is positioned to empower Pennsylvanians, enabling them to report fraud effectively and receive the assistance they require.